1. Ethics and Me
BSNS 5600

2. Ethics Defined
The explicit, philosophical reflection on moral beliefs and practices.
The difference between ethics and morality is similar to the difference between musicology and music.
Ethics is a conscious stepping back and reflecting on morality, just as musicology is a conscious reflection on music.
Lawrence M Hinman

3. Sources of Ethical Thinking
Culture
Religious teaching
Laws and customs
Values inherited from parents
Learning – formal and informal
Personal experiences – perceptions

4. Principles of Ethical Decision Making
Role Morality
Relativism
Idealism
Machiavellianism
Conventional Morality

5. Deontology
The ethical philosophy based on duty (from the Greek deon - duty). Subscribers include:
Christians, especially traditionalists, fundamentalists
Kantian philosophers (Categorical Imperative)
Muslims
Buddhists
Fosters absolute and idealist approaches to ethics

6. Teleology
The ethical philosophy based on the examination of the consequences of the action. Its best known branch is Utilitarianism, which was popularised by John Stuart Mill.
Teleological thinking promotes relativism - the examination of the action within a context, or in terms of the value(s) of the consequences and their effects.

7. Business and Ethics
“The practice of good business ethics amounts to no more than enlightened self interest”
Mr. Pocock, CEO of Shell Oil, 1960’s
Ultimately, our actions as business people will be evaluated against the values of the societies in which we operate - their continued tolerance of us depends on their perception of our worthiness.

8. Managers and Ethics
Managers can have a strong influence on the ethical climate of their team.
Selection of People
Training, particularly Ethics Training
Enforcement of a Code of Ethics
Personal example and commitment
© Unitec New Zealand

9. Personal Moral Philosophy
The personal mix within the sales manager of :
Deontology
Teleology
Ethical skepticism
© Unitec New Zealand

10. Relativism v Idealism
Relativism is the extent to which an individual rejects the existence of universal moral laws. Utilitarianism is a form of relativism, in that it takes each case on its merits.
Idealism measures the extent to which an individual is concerned for the welfare of others and lends itself towards Kantian thinking, in that it implies universal obligations.
© Unitec New Zealand

11. Forsyth’s Taxonomy High Relativism Low Relativism Situationists
Absolutists
Rejects moral codes
Personal analysis of actions in each situation
Relativistic
Idealistic skeptic
Accepts moral codes
Ethical decisions must not harm others
Deontologist
High Idealism
Subjectivists
Exceptionists
Rejects moral codes
Personal values determine judgements, not universal codes
Ethical egoist
Accepts moral codes, but open to exceptions
Optimal outcomes not possible for all
Teleoligist utilitarian
Low Idealism
© Unitec New Zealand

12. Examples of Pressures Facing Managers
Incentives to provide favorable earnings reports
High rewards for short –term profits at expense of long-term growth
Pressure to achieve results
Greed
Reputation
Fear
Other?

13. Ethical Checklist Recognize the Dilemma Get the Facts List the Options
Make Your Decision

14. Common Ethics Issues Hiring and Firing Bullying Using Company Accounts
Expense Accounts
Gifts for Buyers
Bribes
Entertainment
Sexual Harassment

15. Is it a Gift or a Bribe?
* Have you or your colleagues ever offered potential clients personal gifts valued at more than $100 in exchange for their business?

16. Is it a Gift or a Bribe?
In your opinion, would a personal gift valued at $100 - $500 given to a potential client by a salesperson constitutes a bribe?

17. Whistleblowing A last resort action Rarely rewarded
Set-up systems for reporting ethics problems

18. Government Self-regulation
Too much regulation and red tape slows business and raises costs

19. Building an ethics program
Code of ethics
Written
Top management participation
Ethics Training
Regular discussions
Examination of Cases

20. Table 10-1 Eight Ways to Keep Your Staff Honest
Get support from top management showing that they expect you to follow the spirit and letter of the law.
Develop and distribute an ethics policy.
Establish the proper moral climate. If the bosses follow the rules, then the troops are apt to do likewise.
Assign realistic goals. People who try to meet an unfair quota are more likely to rationalise their way to a dishonest behaviour.
Set up controls when needed. Watch people who live above their income.
Suggest that people call for help when they face unethical demands.
Get together with your competition if payoffs are an industry problem.
Blow the whistle if necessary.

21. Perceptions of Managers
Higher levels of Relativism
Lower levels of Idealism
Become more idealistic with age
Women are more idealistic than men

22. The Study
Tested six hypotheses by survey of members of the AMA who belonged to the Sales Management Special Interest Group
Sales managers are non-idealistic and relativist
Older sales managers will be more idealistic, less relativist
Women sales managers will be more idealistic than men
More educated sales managers will be more relativistic
Absolutist managers will be more harsh in their ethical judgements
Absolutist managers will be less likely to engage in unethical practices

23. Findings
Sales managers did not differ significantly in their ethical stance to other marketing managers
Establishing an ethical culture, ethics training and codes of ethics should improve ethical behaviour in sales
Older sales managers are less relativistic, younger managers need to be encouraged to be so
Women are more idealistic than men
Idealism seems a more reliable predictor of behaviour than relativism
People make judgements and form attitudes first, then form behavioural intentions based on them.

24. Discussion Points Are ethics important to business people?
What stance should they adopt?
What actions might they take to ensure compliance with community values?
Who comes first, the Shareholder. Other Stakeholders or the Customer?
Why?